SINGAPORE (Feb 12): Genting Singapore (GENS) reported earnings of $155.9 million for 4QFY2019 ended December, some 4% higher than earnings of $150.2 million a year ago.
Despite the higher earnings in 4QFY2019, the group’s full-year earnings came in at $688.6 million, representing a 9% decline from FY2018’s earnings of $755.4 million.
Revenue for the quarter fell 9% to $607.2 million from $664.8 million in 4QFY2018. This was spearheaded by a 13% decline in revenue from the gaming segment of the group’s Singapore operations. The group’s non-gaming segment in Singapore booked a marginal decline of 0.5%.
These declines were partially offset by a 27% increase in the group’s ‘others’ segment, which constitutes its investment business and other support services.
Cost of sales for the quarter slid 13% to $358 million from $410.4 million the previous year.
Correspondingly, gross profit fell 2% to $249.2 million from $254.4 million while adjusted EBITDA fell 3% to $1.19 million.
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As at end-December, cash and cash equivalents stood at $4.13 billion.
Earnings per share on a basic and diluted basis came in at 1.25 cents and 1.29 cents respectively.
GENS is proposing a final dividend of 2.5 cents per share for FY19, an increase from the dividend of 2.0 cents per share paid out in FY18. The group says that the payment date of the proposed dividend will be announced at a later date
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In its outlook statement, GENS noted that its business was challenged by geopolitical uncertainties and economic volatilities in FY19, and harbours a “generally pessimistic” outlook for 1HFY2020 on the back of the novel coronavirus that has “created massive disruption to the travel and tourism industries.”
“We will be embarking on a stronger productivity drive and utilise this period to refresh and develop our offerings,” says GENS.
GENS also says that the design and planning for its Resorts World Sentosa (RWS) 2.0 project is well underway. The group adds that RWS 2.0 will be a major catalyst for urban rejuvenation, and will spur a new wave of tourism growth for the next decade.
Shares in Genting Singapore closed 1.5 cents higher, or 1.8% up, at 87.5 cents on Wednesday prior to the release of results.
